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Is China's Economic Growth Extraordinar or Mediocre? The Role of the Exchange Rate
Author(s) -
Feng Yun,
Wu Chongfeng
Publication year - 2008
Publication title -
china and world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.815
H-Index - 28
eISSN - 1749-124X
pISSN - 1671-2234
DOI - 10.1111/j.1749-124x.2008.00102.x
Subject(s) - depreciation (economics) , renminbi , exchange rate , china , economics , productivity , effective exchange rate , perspective (graphical) , qualitative analysis , total factor productivity , matching (statistics) , international economics , macroeconomics , qualitative research , economic growth , political science , social science , statistics , mathematics , artificial intelligence , sociology , financial capital , computer science , law , capital formation , human capital
Results derived from evaluations using different measures for China's economic growth are divergent, especially when the RMB exchange rate has experienced large depreciation. Focusing on the changes in the RMB exchange rate matching the demands of economic development, we offer some plausible explanations for the variations in the evaluation results. The significant gaps between different economic performance evaluation results before the mid‐1990s, and evidence from international comparisons of factor productivity indicate that the quality of economic growth in China is different from that of other economies. Evaluation of economic development should take into account both quantitative expansion and qualitative improvement. From this perspective, evaluation results indicate qualitative improvement in the Chinese economy after the mid‐1990s.